June 10, 2021: According to the China Passenger Car Association, The sales of Tesla in China increased in May from the before month but failed to recover levels occurring in March.

In May, Tesla sold 33,463 electric cars, up 29% from April’s 25,845 units, data released late Tuesday showed. However, the number still fell short of March’s 35,478 car sales.

The rebound in sales came despite the growing negative press and regulatory scrutiny on Tesla based on the customer reports of brake failures. The auto industry has cut production because of the global shortage of chips.

Tesla shares decreased 0.25% in the overnight New York trading session. The stock is down just above 14% for the year till now.

In May, Tesla is shipping 11,527 vehicles from its Shanghai factory, lesser than the 14,174 cars reported for April, the passenger car association data showed. Figures for the month of March were unable.

Overall sales of pure-electric cars above doubled from a year ago, rising 186% to 162,000 units in May, the association said. However, some in China’s auto industry have cast doubt on the accuracy of the figures of the association.

While Tesla’s cars rank among the top 10 new energy vehicles sold in China, the report said local start-ups like Nio also performed well in May. New energy vehicles now includes hybrid-powered cars.

The report said Volkswagen accounted for around half, nearly 48% of new energy vehicle sales from mainstream joint ventures with foreign brands.

Although, the report said luxury electric cars from Mercedes Benz, BMW, and Audi have yet to see a significant increase in customer purchases.